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  #1  
Old 29th April 2011, 09:35 PM
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Default Why Stock Split is Hot Topic This Season



Right from the start of this new financial year lot of big companies are using this option.

Earlier lot of people wanted to enter but the stock being fundamentally strong wasn't allowing same.But all of a sudden 3 biggies have decided to do same

First HDFC Bank stock will be split to 5 sub stocks

and now Rallies India and Titan industries both too have decided to split into 10 sub stocks. Titan on contrary also announcing bonus share.

Why all biggies jumping to do same now all of a sudden?
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  #2  
Old 20th May 2011, 04:23 PM
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Companies are of the opinion, because of stock split, liquidity of the stock will be more as more number of shares will be available in the market; secondly, if a Rs.10 share is quoting for Rs.200/-, the same after converting to Re.1/- share may quote for Rs.21/-, thereby the % of gain will be more.
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Old 20th May 2011, 06:52 PM
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Companies are of the opinion, because of stock split, liquidity of the stock will be more as more number of shares will be available in the market; secondly, if a Rs.10 share is quoting for Rs.200/-, the same after converting to Re.1/- share may quote for Rs.21/-, thereby the % of gain will be more.
Yes but all of them at a sudden. Even Tata power jumping into it.

By the way has there been any case of reverse split in Indian markets and even if not why it's done.

I was just reading today an article on Citibank and read that they did same and share went from 4$ to 40$. What's its benefit?
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Old 20th May 2011, 07:26 PM
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By the way has there been any case of reverse split in Indian markets and even if not why it's done.

I was just reading today an article on Citibank and read that they did same and share went from 4$ to 40$. What's its benefit?
A few NSE-listed companies have done reverse splits.

e.g. LG Balakrishnan & Bros did a reverse split in March 2010.

Search for "Consolidation of shares" on sites of NSE and BSE and you will find many companies.

Reverse split is usually done when a stock becomes a penny stock.

Investors (not traders) are skeptical about penny stocks and thus to attract in investors, reverse splits are done.
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Old 23rd May 2011, 01:29 PM
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BHEL added to stock split list today. Plus FPO too for 5% approved.
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  #6  
Old 26th May 2011, 06:42 PM
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BHEL added to stock split list today. Plus FPO too for 5% approved.
Now Tata Motors too will split.
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